Bosses at historic footwear firm Clinkard Group say they are “delighted” after marking a successful centenary year with both rising turnover and profits.
The business was established by founders Charles and Eveline Clinkard with a single store in Middlesbrough in 1924, and now operates 42 Charles Clinkard shops and concessions across the º£½ÇÊÓÆµ as well as an online store.
The firm, which marked 100 years in business with a series of events during April of this year, has now posted accounts for the year ended January 2024, in which turnover rose from £36.1m to £37.9m and operating profit rose from £1.215m to £1.662m. Employee numbers also increased in the year from 446 to 468.
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Cash generation from operations was £1.8m, up from £700,000 but cash at bank at the year end decreased from £4.5m to £3.8m, mainly because of the repayment of the firm’s CBILS loan during the year.
Following the year end Clinkard has closed two stores, including its original shop in Middlesbrough and its Redcar store, saying the company was having to react to changing spending habits on the high street and wider retail sector, forcing it to focus on stronger business performance in other stores and online. The Redcar shop closed in July with the Middlesbrough store closing weeks later in August.
Finance director Jonathan Mankin used the accounts report to reiterate the firm’s challenges.
In the report he says: “The key challenge is to be in the right location, with the right product and have the ability to respond quickly to the changes in retail. The focus going forward continues to be on multi-channel retailing ensuring all formats (online and in store) are fully integrated to ensure the customers’ needs are fully met.
“The company operates in a very competitive marketplace where it is important to ensure the correct product and service levels are consistently offered to the customers. Loss of a key supplier could affect the ability to offer high quality products at acceptable prices.
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“Our customer engagement is critical in supporting sales and includes targeted e-mails, social media, postal marketing, print advertising and in-store. The company actively engages with the community at both local and national level, supporting business groups and charities.
“We continue to target improvements to our existing portfolio through operational excellence, use of technology and cost optimisation.”
Following publication of the accounts, Mr Mankin said: “We are delighted to report strong financial results for the year ending January 2024, which coincided with our 100th Anniversary. Sales grew by 5.1%, and pre-tax profits rose by £600k to £1.7m, demonstrating the ongoing resilience of the business in a competitive marketplace.
“In 2023, we were able to repay the CBILS loan ahead of schedule, and the group is now debt-free, with £3.8m in cash reserves at the end of the year. This positions us well for future growth and investment.
“The start of the new financial year has been positive, and we are confident that Charles Clinkard will remain profitable throughout the year. Our strategy is focused on enhancing our multi-channel retail offering, with significant investment in IT infrastructure to ensure we continue to provide an excellent customer experience, both in-store and online.
“As we celebrate a century of trading, we remain committed to maintaining the high standards of service and quality that our customers expect, while embracing innovation to stay ahead in the evolving retail landscape.”